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Monday, January 21, 2019

pre-approval letter to make an offer on a house? You knowyou need to get your ducks in a row before looking at homes, but does that include securing a pre-approval letter from the bank?

The truth is, getting pre-approved can actually improve your chances of falling into the sellers' good graces, so you want to get it done as soon as possible in the home-buying process.

So how organized do your financials need to be before you start looking? Let's take a look, starting with clarifying what a pre-approval letter actually is.

What is a pre-approval letter?

Mortgage pre-approval is assurance from a lender to provide you with financing to buy a home up to a certain loan amount.

It's a letter from your lender, written on the lender’s letterhead, stating that you are approved for a loan of a specific dollar amount,” To get approved, your lender will collect a stack of paperwork from you that will include pay stubs, federal tax returns, W2s, investment accounts, and residential history. Once your complete financial portfolio is analyzed, the lender will decide whether or not to issue you a pre-approval letter.

Real estate agents prefer showing homes to buyers with a pre-approval letter, because it shows the buyer is financially capable of purchasing.

Agents "need to know if you can really buy a home,” Carriene says. That said, a pre-approval letter isn’t mandatory to tour a home.

"All agents are allowed to show you homes, even if you do not have a pre-approval letter,” she adds. It just might not be in their best interest, so don't be surprised if you get some pushback if you say you don't have pre-approval.

How a pre-approval letter benefits you

If you don't take the time to get pre-approval, it's not just the real estate agent's time you're wasting—it’s possibly yours as well.

Serious about getting serious? Here’s how to get started. You can work with either a loan broker, who can connect you with the right lender, or directly with a bank, if you like the loan program they offer.

Some banks, example, may even give you a ‘priority buyer’ letter, which puts you on a fast track to get your loan closed quickly once you find a home,”

Saturday, January 19, 2019

the–dumps and concerned about affordability,think again.Low down payment mortgage options — some requiring as little as 3% down — are available for qualified borrowers and can offer you a path to homeownership.

Far too many homebuyers still believe they need a 20% down payment to purchase a home. Unfortunately, this is one of the biggest misconceptions in the market and is a perceived barrier to millions of aspiring homeowners.

In fact, the average down payment for first-time homebuyers is 5%, according to the National Association of Realtors®. Sure, you'll have to pay Primary Mortgage Insurance (PMI) for a loan with less than 20% down, but this can be a nominal price to pay for being able to secure a home loan at today's mortgage rates. Buying now can also help you start building home equity.

Making Home Possible

Freddie Mac's Home Possible® mortgage is one option that can help qualified first-time homebuyers buy a home with as little as 3% down. With this option:

Your down payment funds can come from a variety of sources, including a gift from a relative, employer-assistance programs, and down payment assistance programs.

If you are a Do-It-Yourself-er, you can use your skills to help pay for your down payment and closing costs.

Once you reach 20% equity in your home, you'll be eligible to cancel your PMI expense, potentially saving you thousands over the life of the loan.

Home Possible has made homeownership a reality for more than 260,000 families and counting. Reach out to your lender today to learn more about low down payment options that can help you attain homeownership.

Not quite ready to buy a home? You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.

Friday, January 18, 2019

House,You've finally found your dream home, and it's actuallyin your budget. You can swing it—with cash to spare—but with competition fierce, why not go all in and offer way above asking? The seller will be in no position to refuse, right?

Well, hang on for a second. While cash—and lots of it—is certainly king, there are other factors that play into a seller’s decision to accept an offer.

In fact, sometimes there are things in your purchase contract that can outweigh even your supersized offer. Sounds crazy, doesn’t it? But often—especially in today's red-hot market—a successful sale goes beyond money. Here are a few scenarios in which your highest offer might not land you the keys to the front door.

In fact, sometimes there are things in your purchase contract that can outweigh even your supersized offer. Sounds crazy, doesn’t it? But often—especially in today's red-hot market—a successful sale goes beyond money. Here are a few scenarios in which your highest offer might not land you the keys to the front door.

1. You're not flexible on the timeline

First and foremost among possible deal breakers is timing.

“Sellers look at the terms to their specific situation," "Maybe they need more than 30 days to move out, so if someone is pressuring them to move out sooner, that can sometimes be a turnoff if they haven't found a new home to move into.”

On the other hand, the sellers might have already vacated the property, and are eager to unload it pronto.

That’s why customizing the length of the closing period to meet the sellers' needs can be more important than the bottom line. Have your real estate agent find out what they need, and let them know you can accommodate them.

2. You don't have your paperwork squared away

Yes, we've preached and prattled on about the importance of being pre-approved for a mortgagebefore you start your home search. And here's just one of many reasons why: You can blow up the deal if you haven’t been pre-approved, says Sharon Paxson, a Realtor with Arbor Real Estate in Newport Beach, CA.

Why? If you don't have the financing in place to make your initial down payment and closing costs, it doesn't matter how many dollars you promise the sellers.

“Buyers must have that in place as opposed to tying up a house when they're not really qualified to do so,” “When you're ready to put in an offer, make sure your pre-approval is within 30 days or less. [If sellers] see that the pre-approval was done more than 60 days ago, that could make them wonder if you're still credit-worthy to get a loan."

Speaking of being credit-worthy, here’s another no-no: Making a large purchase (such as a car) during the escrow period—even if you have the money to do so. It might affect your ability to obtain financing, and that'll be another major red flag to the seller.

3. You're asking for too many contingencies and concessions

If you’re in a bidding war for your must-have home, you’ll want to go in not only with the highest offer, but also with the cleanest one.

“You want the deal to be as sweet and competitive as possible, so that if the seller takes it, there's a very good chance that the sale will go through,”

For example, a contingency stipulating that your home must sell before you purchase the seller’s house is usually a deal breaker,

“The seller may not consider your offer as favorable because you're still shaky until your house actually sells,” she says.

Another potential turnoff: Negotiating for a large concession, like for the seller to pay all of the closing costs.

Instead, ask for the bare minimum closing costs—or none at all—and make sure the concession doesn't dip into the seller's price tag.

“So if a house is listed for $300,000, and you can go up to $310,00, then put in $310,000 with a $10,000 seller's concession,” she says.

4. You're requesting too many things be included with the home

On a related note: If you ask for the custom drapes, the Smeg appliances, and the Scandinavian hot tub to all be thrown in with the house, sellers might wave you off, Brown says.

“If the sellers had put in the listing that the chandelier wasn't included, then don’t ask for it to be thrown in,”

You might think you're paying for all that stuff with your higher offer, but if you really want the house, tread lightly here. You risk offending the sellers if it looks like you're trying to squeeze as much out of them as possible.

5. You haven't expressed your love—for the house

You might not be the only one bidding high. And when similar offers are on the table, sometimes the sellers look for other factors to break the tie—that another happy family will live in their cherished home, for example. Or that the buyers won’t be gutting it and turning it into something totally different.

So how can you sway sellers who love their home? Put some heart into your offer by giving them some idea of who you are and why you want their home.

I’ve seen buyers take a picture of themselves and their family. If that’s what works to make it more emotional, then do it," "It just depends on who your target is. If your seller is an investor, they’re probably not going to care—they just want the money. But if they raised their family there and want to sell it to another nice family, an emotional appeal might work.”

Writing a love letter to the sellers can sometimes seal the deal

“A buyer may outline why they feel this house would suit their family needs and how they can keep on the tradition of what the previous owner has,” she says.

6. You gave up after your offer was initially refused

If, for whatever reason, the sellers reject your bid, hang in there. Contracts that come in way over asking price tend to have a high cancellation rate, perhaps because the buyers didn’t have pre-approval and their financing falls through.

“I make sure things always end nicely with the listing agent, and tell them that we want to be kept in the loop should there be any problems with the accepted offer,

Ask your agent to check in every two or three weeks. Because then, instead of putting it back on the market and creating a whole new bidding war, the listing agent may just go to the next most attractive offer: yours.

Not quite ready to buy a home? You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.

Thursday, January 17, 2019

offering sweeteners to close the deal. Sales Slump Forces: More builders reportedly are offering incentives to attract home shoppers, including paying closing costs, buying down mortgage rates, and even cutting prices—a move builders are usually reluctant to make, the Los Angeles Times reports.

We are really working a little bit harder to get people in the door and to get people excited,” Mark Mullin, a real estate professional who sells new homes in the L.A. area, told the Times. “These are things [builders] were not having to do a year ago.”

Still, concessions are small compared to a decade ago, but they are growing. Twenty-three percent of builders in December lowered their net prices—in other words, their list price—as well as offered money toward upgrades, according to a survey.

For comparison, only 4 percent of builders reported doing the same a year earlier. Still, that is way down from 2010, when 43 percent of builders were cutting their prices in the aftermath of the housing crisis.

In general, builders prefer to offer money toward upgrades or amenities before resorting to cutting prices. They don’t want home buyers who already signed contracts at a higher price to then back out as their home is being built.

For example, development company Planet Home Living in Newport Beach, Calif., was selling units at $809,000 but not getting the traction it desired for its townhome-like units. In November, it slashed the price by $10,000 and added upgraded flooring, which would have cost buyers an extra $20,000. But so far, buyers are still not jumping at the discounts. Builders say they don’t expect to drop prices further.

Builders have seen sales slowing for several months. KB Homes, Toll Bros., and other homebuilders reported a drop in sales in the last quarter. Builders and real estate professionals say a jump in mortgage rates in 2018 and more than six years of price increases led to the slowdown. Some buyers are waiting for reassurance that we are not in a crash,” Mullin told the Times.

Meanwhile, some homebuilders are readjusting their pricing expectations. “We took prices beyond the realm of reality,” says Grant Keene, chief executive of WJK Development, a luxury builder in Huntington Beach, Calif. The company tried unsuccessfully to sell single-family homes for up to $2.2 million—10 percent higher than the previous per-square-foot record for the area. “It made consumers balk,” Keene says.

Not quite ready to buy a home? You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.

Wednesday, January 16, 2019

cooling in many of the nation's largest metros in December. According to realtor.com®'s December housing report today, the largest markets saw a 10 percent increase in inventory, compared to a nationwide average of 5 percent, as time on market decelerated, listing price growth slowed and price cuts increased.

"Sellers are adjusting their strategies, especially in slowing, pricey markets with growing availability of homes for sale," said Danielle Hale, chief economist for realtor.com®. "Although buyers may not find a bargain, the price discounts and recently lower borrowing costs may entice upper-tier buyers back into the market. By contrast, entry-level shoppers continue to contend with declining availability of homes for purchase, albeit at a slower rate.

- For-sale homes in 40 percent of large markets experienced a longer time on market

- Median listing price in December was $289,000

Homes sold at a pace of 80 days in December, three days faster than last year. However, this rate is decelerating, as December 2017 saw homes sell six days faster compared to the previous year. On average, typical properties on the list of 45 top metros* spent the same amount of time on the market as the previous year, while 19 markets saw the typical property actually spend more time on the market than last year

Nationally, the percentage of listings that saw price reductions increased to 15 percent in December, up from 13 percent a year ago. The increase is being driven by the nation's largest markets. In fact, 38 of the 45 top markets saw an increase in the share of price reductions.

The steepest declines in median listing prices were felt in San Jose, Calif., and San Francisco, which were down 12 percent and 4 percent, or $130,000 and $33,000, respectively. Austin, Texas, Houston, Dallas, Nashville, Tenn., Charlotte, N.C., and Jacksonville, Fla. also saw declines. However, selling prices in some of these markets are not yet reflecting these declines.

Not quite ready to buy a home? You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.

Tuesday, January 15, 2019

It's always good to kick off a new year with a few age-oldquestions: What is the meaning of life? Did the chicken or the egg come first? And where can folks find great rental deals?

With sky-high prices in most of the nation, it's cheaper to rent a three-bedroom property than to purchase one in 59% of U.S. housing markets, according to the 2019 Rental Affordability Report from real estate information firm ATTOM Data Solutions. And unfortunately, home prices are rising faster than rents in 70% of housing markets.

The firm looked at U.S. Department of Housing and Urban Development fair market rent data, U.S. Bureau of Labor Statistics wage data, and sales deed data in 755 counties to come up with its conclusions.

The American Dream of owning a home may be just that—a dream," ATTOM spokeswoman Jennifer von Pohlmann said in a statement. “Home price appreciation [is] increasing annually at an average of 6.7% in those counties analyzed for this report and rental ates [are] increasing an average of 3.5%."

Where is renting the most unaffordable?

Penny-pinching, would-be homeowners want to avoid the nation's biggest cities, where it's nearly always cheaper to rent than to buy (although rents are no bargain in these markets either).

The only three counties analyzed with a million or more residents where it's cheaper to buy than rent are Wayne County, MI, home to Detroit; Philadelphia County, PA; and Cuyahoga County, OH, home to Cleveland.

Those on a budget, whether they're renting or buying, also probably want to steer clear of California. Santa Cruz County, in Northern California, was deemed the most unaffordable rental market when factoring in wages—it takes about 81.7% of average earnings to lease a three-bedroom abode there. The county of luxurious homes sits on the Pacific Ocean just south of Silicon Valley, the nation's priciest housing market.

Santa Cruz was followed by Honolulu County, HI; Spotsylvania County, VA; Maui County, HI; and San Benito County, CA.

Where is renting the most affordable?

So where can renters catch a break? Those on a tight budget should look at smaller cities and their surroundings in the South and Midwest.

The most affordable markets for tenants seeking three-bedroom abodes are rural Roane County, TN, near Knoxville. That's because they'll spend only an average of 19.7% of their wages on housing to live in the community, home to one of the nation's top research labs, the Oak Ridge National Laboratory, at the backdrop of the Great Smoky Mountains.

Rounding out the top five affordable rental areas are Peoria County, IL; Mcminn County, TN; Green County, OH, home to Dayton; and Rhea County, TN.

Whether you're moving across town or across the country, planning can make your transition a lot smoother. For more information on your responsibilities as a homeowner, visit Carriene Porter at Precision Realty & Associates,where you’re guaranteed to get the expertise and advice you need.

Not quite ready to buy a home? You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.